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Textile Industry in India continues to be dominated by cotton, accounting for nearly 3/4th of the total fibre consumption in the country. Globally fibre consumption is dominated by manmade fibres having 70 per cent of share in total fibre consumption. Contrary to the global trend, fibre consumption in India is skewed towards natural fibres with around 65% share, especially cotton.
Global Textile Trade Stood at 1300 Billion Dollar. China continued to shed its market share, but India has been clearly missing the bus – most of the gains have been captured by Bangladesh and Vietnam – clearly the 2nd and 3rd largest exports after China, respectively. Bangladesh clearly accounts for over 6% of the global apparel exports while Indian exports continue to de-grow for the second year in a row.
Here are the Top 10 Textile Markets in Globe
Other than cotton yarn exports, most other categories – especially Indian apparel exports are clearly seeing de-growth. The early part of the year, the competitiveness was hampered by a strong rupee.
Introduction to Textile Industry in India
The size of the Textile Industry in India stood at 150 billion US dollar as of 2017. Textile Industry in India is one of the largest in the world with a large raw material base and manufacturing strength. The mill sector, with 3400 textile mills having installed capacity of more than 50 million spindles and 842000 rotors is the second largest in the world.
Textile industry contributes to 7% of industry output in value terms, 2% of India’s GDP and to 15% of the country’s export earnings. With over 45 Million people employed directly, the textile industry is one of the largest sources of employment generation in the country.
This is the Chart that shows textile industry growth in India for the last 10 years.
Textile Export of India
The India textile industry is the second largest exporter in the world after China. The share of textile and clothing in India’s total exports stands at 12.4% in 2018. India has a share of 5% of the global trade in textile and apparel.
The major textile and apparel export destination for India is the European union and USA with 47% total textile and apparel export. It employs 4.5 crore people directly and another 6 crore people in allied sectors.
The import of textiles & apparel Products in India stood at US$ 6.3 Billion during FY 2017. India enjoys a trade surplus in this sector
Technical textiles are textiles materials and products used for their technical performance and functional properties. Technical textile has a huge scope in India and is in the sun-rice sector. India accounts for 3% of the world’s technical textile production producing roughly 90,000 MT of technical textiles. India accounts for 4% of global technical textile exports and 3% of global imports. The technical textiles industry in India was estimated at Rs 1,16,217 crore in the year 2018. The domestic market is projected to reach Rs.2,00,823 crore by 2021 with a CAGR of 20%.
Cotton Raw Material
Cotton is one of the most important cash crops and accounts for around 25% of the totoal global fibre production. In the raw material consumption basket of the Indian textile industry, the proportion of cotton is around 59%. The consumption of cotton is more than 300 lakh bales (170 kg each) per year. India accupies first position in the world in the cotton acreage with around 105 lakh hectare under cotton cultivation which is around 35% of the world area. Ind